Blend Labs (BLND) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 momentum with 12% year-over-year revenue growth to $26.8M, record free cash flow of $15.5M, and three consecutive quarters of non-GAAP operating profitability, driven by a strategic shift to a software-first model and major customer wins.

• Entered an exclusive process to sell the title insurance business, finalizing the transition to a software-first model and reclassifying Title segment as discontinued operations.

• Signed 11 new or expanded deals in Q1, including a $50M multi-product renewal and expansion with a top financial institution, and achieved record first quarter signings and remaining performance obligations up 70% year-over-year.

• Launched new products such as Rapid Home Lending Suite and Business Deposit Account Opening, expanding the product suite and attracting leading institutions.

• Achieved first positive free cash flow in company history, reinforcing financial strength.

Financial highlights

• Q1 2025 platform revenue was $26.8M, up 12% year-over-year and above guidance midpoint; Consumer Banking Suite revenue rose 45% to $9.6M, while Mortgage Suite revenue declined 3% to $14.6M.

• Platform non-GAAP gross profit was $19.5M (73% margin, up from 68% a year ago); GAAP gross margin improved to 71% (from 67%).

• Non-GAAP operating income was $1M (4% margin); GAAP net loss from continuing operations narrowed to $6.6M from $20.7M year-over-year.

• Free cash flow was $15.5M (58% margin), driven by collections from late 2024 deals; cash provided by operating activities was $20.1M.

• RPO (remaining performance obligations) set a record at $158.1M, surpassing the $150M target for 2025.

Outlook and guidance

• Q2 2025 platform revenue guidance: $30.5–$32.5M; non-GAAP net operating income expected between $3.5–$5M.

• Full-year 2025 non-GAAP operating expenses expected to be $85–$90M.

• Guidance reflects expectations of higher U.S. mortgage originations in Q2 and continued platform expansion.

• Economic value per funded loan expected to trough at $88 in Q2, with improvement anticipated as new solutions ramp.